Explain briefly the components of physical distribution.

The components of physical distribution are given below –

Order processing - It includes receiving order, recording it, fulfilling the order, executing or assembling the products for dispatch and finally credit and collection.


Warehousing - It facilitates both continuous production and continuous marketing and contributes to customer satisfaction. It adds place utility and time utility.


Transportation - It is the main component of distribution system which involves transporting the product from the place of production to the place of use.


Maintenance of inventory - The distribution firms maintain proper inventory so as to ensure the timely supply.


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